Posted on: Wednesday, November 21, 2001

Editorial
Aid for Island airlines requires reciprocation

Make no mistake; Hawai'i's two passenger airlines are vital lifelines. They must not be interrupted.

After the Sept. 11 attacks, airports and airlines were at first shut down altogether, and then in the ensuing weeks, airline passenger traffic dropped off drastically. Ridership is still way down and shows little sign of recovery.

Aloha Airlines, reports Advertiser business writer Andrew Gomes, is making 121 daily interisland departures, following a 26 percent cut in service. Hawaiian Air cut its service 20 percent.

Gov. Ben Cayetano and the state's congressional delegation moved swiftly and effectively to help keep Hawaiian and Aloha in the air. Between them, they have been relieved of paying $12 million in annual landing fees to the state and should receive more than $30 million in federal aid.

Now the new national aviation security bill, signed into law by President Bush this week, exempts Hawai'i's interisland carriers from federal antitrust laws prohibiting them from collaborating on measures that might affect fares or reduce competition. In practice, the two can put their heads together so that two competing half-empty aircraft won't be required to travel uneconomically between the same places at the same time.

The airlines affirm that they are most likely to use the law for scheduling, not fares. But they haven't begun discussing it yet, they say.

There are safeguards. Both Cayetano and U.S. Transportation Secretary Norman Mineta would have to approve of any proposal under the new law.

These are all measures that we have supported. The threat to the survival of Hawaiian and Aloha, as well as our national carriers, was and remains very real.

But it is imperative that those who manage these airlines understand that they have an obligation to reciprocate, where possible. The public that has so freely extended this support has a right to expect a sensitive response from airlines.

This means, for instance, that:

• Big year-end bonuses for airline executives would not be well received.

• Layoffs, which if not temporary result in large public costs, should be last resorts and not a handy tool for tweaking the bottom line.

• Airlines may have to share information they formerly treated as proprietary.

Critics have predicted that the new law will bring a new round of layoffs, less convenience to the public and higher prices. The public will tolerate some of this as the cost of keeping vital air routes open.

But the airlines must be forthcoming and open about what they're doing and why, and clear about how the flying public will benefit.